Employee Benefits Retirement - Hawaiidod.hawaii.gov/hro/files/2013/01/Employee-Benefits... · LIFE...

Employee Benefits

& Retirement

Module 17

National Guard

Technician Personnel Management Course

2

EMPLOYEE BENEFITS &

RETIREMENT

• Health insurance

- FSA

- LTC

• FEDVIP

• Life insurance

• Retirement plans

• Thrift Savings Plan

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FEDERAL EMPLOYEE’S HEALTH

BENEFITS (FEHB)

• Guaranteed coverage –

no medical exam

• No restrictions on pre-

existing conditions

• Government contributes

substantially

• Technician must enroll

self only or self & family

within 60 days of

eligibility

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FEDERAL EMPLOYEE’S HEALTH

BENEFITS (FEHB)

Temporary employees NTE one year or

less are excluded

• Enrollees may change plans or options

during annual Open Season

• In certain cases, may also convert

coverage when leaving government

• Can be maintained while on LWOP

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Flexible Spending Account (FSA)

FSA: Health & Child Care

• Tax-favored program

• Pay a variety of health care or dependent

care

• May use for OTC purchases with

physician prescription

• For more information visit

http://www.FSAFEDS.com or call

1-877-372-3337

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Long Term Care (LTC)

• Long term care is ongoing care for people who need lengthy or even lifelong assistance with daily living due to an illness, injury, or severe cognitive impairment.

• Non-skilled, custodial care; help with daily living activities

• Supervision due to cognitive impairment

(e.g. Alzheimer’s disease)

• For more information visit http://www.ltcfeds.com/ or call 1-800-582-3337.

Federal Employees Dental and

Vision Insurance Plan (FEDVIP)

• Supplemental dental and vision benefits

• Available to federal employees

• Provides competitive premiums

• No pre-existing condition limitations

• Separate from FEHB

• 7 dental plans/3 vision plans with PPO

• For more information visit

http://www.BENEFEDS.com or call

1-877-888-3337. 7

8

FEDERAL EMPLOYEE’S GROUP

LIFE INSURANCE (FEGLI)

Basic Life: annual basic salary

rounded to next highest thousand

plus $2,000 – automatic unless

waived

• Technician pays 2/3 – Government

pays 1/3

• If originally waived, a physical

exam is required (at the employee’s

expense) in order to enroll later

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FEDERAL EMPLOYEE’S GROUP

LIFE INSURANCE (FEGLI)

Options:

A: Standard – an additional $10,000 at employee’s cost based on age

B: Additional – 1 to 5 x basic pay, at employee’s cost based on age

C: Family – 1-5 multiples (each multiple worth $5,000; Spouse - $25,000 max; Child – each multiple $2,500 max $12,500 at employee’s cost based on age)

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FEDERAL EMPLOYEE’S GROUP

LIFE INSURANCE (FEGLI)

Options :

• A, B & C – Any combination with the Basic coverage

• Employee should conduct a periodic review of beneficiary designation in their OPFs

• Continues 12 months LWOP free

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RETIREMENT &

THRIFT SAVINGS PLAN

Three retirement systems/plans:

• Civil Service Retirement System (CSRS)

• Civil Service Retirement System- Offset (CSRS-Offset)

• Federal Employees’ Retirement System (FERS)

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CIVIL SERVICE RETIREMENT

SYSTEM (CSRS)

• Oldest of the system

• Employees and government

each contribute 7% of

employee’s basic annual pay

• Employees may also

contribute unmatched 10% to

Thrift Savings Plan

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CIVIL SERVICE RETIREMENT

SYSTEM – OFFSET

(CSRS-OFFSET)

Choice for employees rehired who…

• Had 5 + years previous CSRS service

prior to a break of 365 days or more

• Differs from CSRS, but the unmatched

employee contribution to Thrift Savings

is the same

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FEDERAL EMPLOYEES’

RETRIEMENT SYSTEM

(FERS)

Only retirement system available

to…

• New employees hired after

1/1/1984

• Prior service employees after a

break of over 365 days – but not

eligible for CSRS-Offset

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FEDERAL EMPLOYEES’

RETIREMENT SYSTEM (FERS)

• Employees contribute 0.8% of basic pay each pay period (7% including social security)

• Government contributes between 11.9% to 14.9% (including social security)

• Effective 01/01/2013 - higher employee contribution rate for new hires (see next slide)

FEDERAL EMPLOYEES’

RETIREMENT SYSTEM (FERS)

• PL 112-96, Section 5001, the Middle Class Tax

Relief and Job Creation Act of 2012) --

• Effective 01/01/2013, new employees will pay 3.1%

of basic pay each pay period.

• Will be known as “FERS-RAE” (FERS-Revised

Annuity Employee)

• Three exceptions apply:

– Individual already covered under FERS on 12/31/2012;

– On 12/31/2012, individual was performing civilian service

that is creditable or potentially creditable under FERS; or

– On 12/31/2012, was not covered under FERS, but

previously had at least 5 years of creditable or potentially

creditable service under FERS.

16

FEDERAL EMPLOYEES’

RETIREMENT SYSTEM (FERS)

• Employees may contribute up to IRS Limit to Thrift Savings

• Government contributes 1% to all FERS employees, but also matches first 3% and ½ of next 2% of employee’s contribution

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TYPES OF RETIREMENT

• Optional (Voluntary)

• Discontinued

Service (DSR)

• Military Reserve

Technician(MRT)

• Disability & Special

Disability

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HANDOUT

HRO Tech Retirement Brief

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Beneficiary Forms

Review annually!

• Marriage, divorce, child, etc.

• FEGLI

• TSP

• UNPAID COMPENSATION

• FERS/CERS

Creditable Service for Retirement

Deposit (Non-Deduction) Service - Period of service

when no CSRS or FERS contributions are withheld, i.e.,

Prior-69 service and temporary service.

For CSRS:

• Prior to 1 Oct 1982 -- creditable for eligibility and computation.

Annual annuity is permanently reduced by 10% of the unpaid

deposit amount if not paid.

• On or after 1 Oct 1982 -- creditable for eligibility only unless

the deposit is paid.

For FERS:

• Prior to 1 Jan 1989 -- creditable only if deposit is paid.

• On or after 1 Jan 1989 -- not creditable; deposit not allowed.

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Creditable Service for Retirement

Redeposit Service - Period of service for which you received a refund of your retirement contributions upon separation from service.

For CSRS:

• Prior to 1 Mar 1991 -- creditable for eligibility and computation. Annuity actuarially reduced based on age at retirement if redeposit is not paid.

• On or after 1 Mar 1991 -- creditable for eligibility only unless redeposit is paid.

For FERS: Creditable for eligibility only unless redeposit is paid.

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Creditable Service for Retirement

Post-1956 Military Service - Title 10 active duty service.

For CSRS:

• First employed before 1 Oct 1982 – creditable regardless of making deposit of 7% of estimated military earnings. If deposit not paid and eligible for Social Security at age 62, annuity recomputed to remove active duty service (“Catch-62”).

• First employed on or after 1 Oct 1982 -- No credit unless the 7% deposit is paid.

For FERS: Not creditable unless a deposit of 3% of estimated military earnings is paid.

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Creditable Service for Retirement

USERRA - Uniformed Services Employment &

Reemployment Rights Act of 1994 - Title 10 and certain Title

32 active duty service performed on or after 1 Aug 1990.

For CSRS: Creditable if deposit is paid -- 7% of estimated

military earnings OR an amount that would have been deducted

for retirement from civilian pay had you not entered on active

duty, whichever is less. (Catch-62 applies here too.)

For FERS: Creditable if deposit is paid -- 3% of estimated

military earnings OR an amount that would have been deducted

for retirement from civilian pay had you not entered on active

duty, whichever is less.

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HANDOUT

USERRA Brief

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Individual Exercises

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Questions